After Volkswagen, Porsche Enters into Blockchain Industry

After Volkswagen, Porsche Enters into Blockchain Industry

Porsche is currently testing Ethereum-based blockchain technology in its vehicles in collaboration with Europe-based startup XAIN. The German company is working on a new blockchain based business model and has successfully tested the blockchain application that is aimed towards improving the autonomous driving functions.

Porsche to leverage ethereum blockchain technology

Just last week, Volkswagen announced its plan to utilize the IOTA technology in order to transform the automobile industry. Now, another big name in the automobile sector, Porsche is coming into partnership with the European-based startup XAIN, which is an Ethereum backed blockchain. The startup basically leverages new technologies like blockchain, data analysis and machine learning that got the opportunity by winning the Porsche Innovation Contest.

The German car manufacturer explained in a statement:

“The car becomes part of the blockchain, making a direct offline connection possible – that is, without diversion through a server. Taking 1.6 seconds, the process of opening and closing the car via an app is up to six times faster than before. In addition, efficient cryptographic encryption takes place.”

The renowned brand is currently testing the application of blockchain technology directly in its vehicle. So far, the locking and unlocking mechanism of the vehicle has been tested successfully by utilizing the smart contracts of the Ethereum blockchain.

Smart Contracts also allows the easy integration of third parties that too without any hardware. As per Porsche, this would further enable the car to have temporary access to parcel deliveries.

Porsche working on a new blockchain business model

Additionally, the company has also tested the blockchain technology for encrypted data loggings. This is a new business model that Porsche is putting the focus on where the control of the data is completely in the hands of the user that has the discretion to make the decision on the basis of their particular situation.

“Through auditable data logging, the data to be processed is encrypted locally in a distributed blockchain… With this basis, the future of autonomous driving will see improved functions on offer: Local data can be used to obtain regional learning effects, which can be shared securely with other vehicles. The customer can make use of swarm data, which is protected at the same time.”

This is a three-month partnership where the ideas will be generated on ways to integrate the SpinLab into their project.

With the big bands from the automobile industry like Porsche and Volkswagen entering the crypto world, it will be interesting to see which other names will be the next in line.

What are your views on blockchain being leveraged in the auto industry? Who do you think will join next and how do you think it will help in transforming people lives in general? Let us know below!

I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.